Anti-Dumping Duty Paid By Mistake In Self-Assessment Has No Legal Character Of 'Duty', Must Be Refunded: CESTAT

The New Delhi Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has stated that anti-dumping duty paid by mistake in self-assessment has no legal character of 'duty' and must be refunded. Dr. Rachna Gupta (Judicial Member) stated that the assessee had added the amount of Anti-dumping duty while self-assessing the customs duty liability. Hence the Anti-dumping duty added to the amount of duty while self-assessing the Bill of Entry cannot take the character of duty. The assessee/appellant imported 29 boxes of aluminum foil of 6.3 Microns vide Bill of Entry No 2535627 dated 21.09.2022 (BOE) declaring the assessable value as Rs 68,29,336/- on payment of basic customs duty, social welfare surcharge, integrated tax, & Anti-dumping duty (as per the Notification No. 51/2021-Cus (ADD). However, due to clerical error, the said Bill of Entry was self-assessed including Anti-Dumping Duty (ADD) as against the aforesaid Notification No. 51/2021 dated 16.09.2021 under which the Anti-Dumping Duty on Aluminium Foil of 6.3 Microns is exempted. Accordingly, the assessee preferred an application seeking reassessment of impugned Bill of Entry dated 21.09.2022 and also another application seeking refund of excess duty paid amounting to Rs.7,14,018/- (Anti-Dumping Duty of Rs.6,05,100/- + differential IGST of Rs.1,08,918/-). However, the Adjudicating Authority rejected the application for reassessment of BOE for the reasons that in terms of Section 128 of the Customs Act it should be filed before the appellate authority. The order was challenged before Commissioner (Appeals) which was dismissed. The Tribunal observed that the assessing officer/appraiser herein could reassess the BOE only prior the good, imported are not cleared for home consumption. Therefore, it is an appeal only which is maintainable in terms of Section 128 of the Customs Act. The Tribunal stated that the Notification No. 51/2021 exempts import of Aluminum Foil of 6.3 microns from payment of ADD. But apparently, the assessee had added the amount of ADD while self-assessing the customs duty liability. Hence the ADD added to the amount of duty while self-assessing the BOE cannot take the character of duty. In terms of Article 265 of Constitution of India, the authority cannot retain the said amount. The excess payment is rather apparent from BOE itself. The amount in question should not have been retained by the department was therefore refundable, added the Tribunal. The bench stated that despite noting that the imported aluminium foil fell within the exemption under Notification No. 51/2021-Cus (ADD) and that an excess amount of Rs.7,14,018/- had indeed been paid, which substantively validated the claim. However, relief was denied on procedural grounds. In view of the above, the Tribunal allowed the appeal. Case Title: M/s. Uflex Limited v. Commissioner of Customs (Import)-New Delhi Case Number: Customs Appeal No. 51897 of 2024 Counsel for Appellant/ Assessee: Lalitendra Gulani Counsel for Respondent/ Department: M.K. Chawda Click Here To Read/Download The Order

Anti-Dumping Duty Paid By Mistake In Self-Assessment Has No Legal Character Of 'Duty', Must Be Refunded: CESTAT

Mehak Dhiman

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